Breaking: Piracy led probe uncovers hawala network as ED files PMLA case against Magicwin

The Enforcement Directorate’s (ED) Ahmedabad zonal office has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA), 2002 against online betting platform Magicwin and others, alleging large-scale illegal betting operations and laundering of proceeds of crime through hawala channels, shell entities and cryptocurrency transactions.

The complaint was filed before the Special PMLA Court in Ahmedabad on January 15, 2026, naming 14 individuals and entities as accused, the agency said.

FIR-triggered PMLA probe

The money laundering investigation stems from a first information report (FIR) registered by the Cyber Crime Police Station, Ahmedabad, against the operators of Magicwin and associated entities. The FIR invoked provisions of the Indian Penal Code, the Copyright Act, and the Information Technology Act, alleging unauthorised hosting and streaming of cricket matches during the ICC Men’s T20 World Cup 2024.

According to investigators, the accused illegally streamed matches for which the official broadcast and digital rights had been granted by the International Cricket Council (ICC) to Star India Pvt. Ltd., enabling them to offer live betting with minimal latency — a critical advantage in illegal wagering.

Based on the scheduled offences cited in the FIR, the ED registered a case under the PMLA to trace and attach proceeds generated from the alleged betting operations.

Alleged business model

The ED has described Magicwin as an online betting exchange masquerading as a gaming platform. Through its website and mobile application, the platform allegedly offered betting on multiple sports, including cricket, football, tennis and horse racing, along with live scorecards and unauthorised live streams.

The platform also purportedly hosted live casino games such as Baccarat, Teen Patti, Roulette, Andar-Bahar, Poker and Blackjack, operated through live dealers located overseas rather than automated systems.

Investigators said the betting games were technically operated from jurisdictions such as the Philippines and other countries where gambling is legal, with application programming interfaces (APIs) allegedly copied and rebroadcast on Magicwin for Indian users.

Money laundering routes

According to the prosecution complaint, Magicwin routed betting proceeds through a complex financial network involving mule bank accounts, shell companies, payment gateways and domestic money transfer (DMT) services.

The ED has alleged that winnings were credited to players’ accounts through aggregators linked to shell firms, while substantial amounts were siphoned off via hawala operators and cryptocurrency wallets to obscure the money trail and evade regulatory scrutiny.

Officials estimate the total value of suspicious betting transactions under investigation to be over ₹1,000 crore, according to people familiar with the matter.

As part of the probe, the ED has conducted 67 searches across multiple states over the last six months, including recent raids at 21 locations in Delhi, Mumbai and Pune.

The agency has so far frozen and seized assets worth about ₹2.5 crore, while an additional ₹3.55 crore in cash and valuables was recovered during recent search operations. Digital devices and documents seized during the raids are being forensically examined.

Foreign ownership, Pakistan links

The ED has claimed that the Magicwin website is owned by Magicwin Sports Limited, a company registered in the United Kingdom. Its directors have been identified as Gulab Harji Mal and Omesh Kumar Gurnani, Pakistani nationals reportedly residing in the United Arab Emirates.

Investigators are examining fund flows allegedly routed from India to Pakistan via Dubai, marking what officials described as the first confirmed Pakistani linkage uncovered in the Magicwin case.

The probe has also revealed the involvement of a Gujarat-based trio from Unjha — Divyanshu Patel, Harsh Patel and an associate based in Canada — who allegedly set up servers for unauthorised live streaming of cricket matches. Investigators said Pakistani cable operators and Dubai-based bookies were able to broadcast matches in real time, or even ahead of the official feed, facilitating illegal betting.

The ED has seized angadias (traditional money couriers), bookies and operators linked to these transactions, and further names from Gujarat and Pakistan are expected to emerge.

Celebrity promotions under scanner

The agency has also taken note of celebrity and influencer endorsements of the platform. Actors Mallika Sherawat and Pooja Banerjee have already been questioned, while two more celebrities have been summoned. At least seven additional social media influencers and actors are likely to be called for questioning next week.

The ED is examining whether promotional activities violated advertising norms and facilitated proceeds of crime under the PMLA.

The ED said further investigation is underway, and additional attachments, summonses and arrests may follow. Under the PMLA, the filing of the prosecution complaint enables the special court to take cognisance of the offence, while parallel financial investigations into overseas fund flows and cryptocurrency transactions continue.